Proposed cuts in federal Medicaid funding would lead to the loss of 477,000 healthcare jobs in 2026, according to a new report.
In February, the House of Representatives passed a budget resolution that calls for an $880 billion reduction in spending over 10 years for programs under the jurisdiction of the House Energy and Commerce Committee. Medicaid is expected to be the majority of these cuts.
The report, published March 25, was written by researchers from the Commonwealth Fund and the Milken Institute School of Public Health at George Washington University.
If these proposed cuts are implemented, they will have a “multiplier effect” across the economy, according to the report.
Here are five things to know:
- The Commonwealth Fund estimates a reduction in federal Medicaid funding would lead to the loss of 880,000 jobs across the U.S. in 2026. Of these, 477,000 would be healthcare jobs in hospitals, clinics, pharmacies and nursing homes.
- California would lose the largest number of healthcare jobs, at 67,200, according to the Commonwealth Fund’s estimates. New York would lose 39,500 jobs.
- State GDPs would decline by $94.9 billion as a result of Medicaid cuts in 2026, according to the report.
- The House budget resolution would also cut funding for supplemental nutrition programs. Cuts to Medicaid and SNAP combined will cost an estimated 1 million jobs in 2026.
- The specific parameters of cuts to Medicaid and SNAP are unclear. The Commonwealth Fund’s report assumes that these cuts are distributed evenly over 10 years and proportionally across states.
See the full report here.
